• Spanish children’s fashion brand Martín Aranda plans to set up a textile and garment factory in Tunisia.

• Tunisia’s textile and clothing industry employs about 160,000 people and accounts for 18% of industrial exports.

• Tunisia offers tax exemptions, investment grants up to 30%, and social security contribution waivers for up to 10 years to companies investing in less developed inland regions.

Spanish children’s fashion brand Martín Aranda is considering setting up a textile and apparel factory in Tunisia as part of its international expansion strategy, the Tunisian Agency for the Promotion of Industry and Innovation (APII) said on October 13.

The announcement followed a meeting in Tunis between Javier Aranda, CEO of Martín Aranda, and Omar Bouzouada, Director-General of the APII, during the company’s investment prospecting visit to the country.

“During the meeting, Mr. Aranda expressed the company’s willingness to establish operations in Tunisia to develop a production unit in the textile sector,” the APII said in a statement. The agency added that the initiative aligns with the company’s strategy to capitalize on Tunisian know-how, qualified labor, and the country’s strategic location in the heart of the Mediterranean.

Bouzouada outlined the support programs and incentives offered to facilitate industrial investments in Tunisia, particularly for foreign companies seeking to expand production capacity or access nearby European and African markets.

Fiscal and Financial Incentives

Tunisia’s textile and clothing industry employs nearly 160,000 people and includes about 1,500 companies, according to the Tunisian Textile and Clothing Federation (FTTH). The sector represented 18% of Tunisia’s industrial exports in 2024, according to data from the French Treasury Directorate (DG Trésor).

Foreign investors have been drawn by competitive labor costs, geographic proximity to Europe, and favorable trade access to European, African, and Middle Eastern markets. The government also provides substantial fiscal and financial incentives for firms establishing operations in underdeveloped inland regions.

These incentives include an investment premium of up to 30% of project costs, corporate tax exemptions for five to ten years, followed by a reduced 10% tax rate, and full exemption from employer social security contributions (16.57% of gross wages) for up to a decade. The benefits depend on project characteristics such as priority zones, national interest, or export regime.

Founded in 1965, Martín Aranda designs and manufactures baby and children’s clothing and operates hundreds of retail points in Spain, Portugal, Italy, France, Mexico, and Peru.

This article was initially published in French by Walid Kéfi

Adapted in English by Ange Jason Quenum